Peabody Energy

Peabody Energy, previously Peabody Coal Company, is the largest private-sector coal company in the world.

In 2010, Peabody Energy had $6.9 billion in total revenue. Its CEO, Gregory Boyce, received compensation totalling $9.6 million that same year.

Ties to the American Legislative Exchange Council
Peabody is a member of the American Legislative Exchange Council (ALEC). Kelly Mader, Vice President of State Government Relations, represents Peabody on ALEC's corporate ("Private Enterprise") board in 2011. Mr. Mader has also been the co-chair of the Natural Resources Task Force (now the Energy, Environment and Agriculture Task Force), whose operating principle was "free market environmentalism," with the assertion that "there is a mutually beneficial dynamic between a robust economy and a healthy environment. Natural resources are generally resilient and respond positively to wise management."

Lobbying and Political Contributions
Peabody Energy donated $580,334 to federal candidates in 2010, 71% to Republicans and 26% to Democrats. The coal mining lobby donated $18.3 million to members of Congress in 2010, most of it to Republicans. Peabody was also the top lobbying client in the industry in 2010, spending almost $6.6 million on lobbying in 2010.

Read more about these activities below, here and here.

Corporate Activities
In 2006, Peabody sold over 247 million tons of coal. The company's coal fuels approximately 10% of the electricity generated in the United States and 3% of electricity generated throughout the world. Peabody sells coal to over 350 electricity generating and industrial plants in 15 countries. By 2006, the company had 10.2 billion tons of proven and probable coal reserves. It holds majority interests in 40 coal operations located throughout the United States and in Australia and Venezuela. In addition, Peabody owns minority interests in two mines through joint venture arrangements. In the United States, company-owned mines are located in Wyoming, Colorado, Arizona, New Mexico, Illinois, and Indiana. Peabody's largest operation is the North Antelope-Rochelle Mine located in Campbell County, Wyoming, mining more than 87 million tons of coal annually. Peabody also previously owned coal mines in West Virginia and Kentucky. The company spun-off these assets into the independently-traded Patriot Coal Corporation in October 2007.

At a November 2007 presentation to investment analysts, the President of BHP Billiton Coal, Dave Murray, noted that Peabody had a one percent share of the global coal export trade, making it the twelfth largest coal exporter in the world. Peabody was Nos. 338 and 346 on the Fortune 500 list of companies in 2011 and 2010, respectively.

The company's third-quarter 2010 profits more than doubled, with revenue rising to $1.86 billion from $1.67 billion. The increase was driven by a 36 percent rise in Australian sales, increases in Trading and Brokerage business activity, and rising imports to China, India and other parts of Asia for both steel-making metallurgical coal and thermal coal which is used in power generation. For the fourth-quarter of 2010, Peabody stated that their profits doubled due to global demand for coal. For the first quarter of 2011 Peabody reported their quarterly profits were up 32% due to higher coal prices.

The company grew signifcantly in 2008, with Peabody’s earnings per share increasing 162 percent over the previous year. Total compensation for Peabody CEO Gregory Boyce reached $11.95 million, up from $8.58 million in 2007. Boyce’s salary increased 7.5 percent to $1.05 million, and his yearly bonus was $2.07 million. He was also credited with $7 million in stock and $1.7 million in options, some of which reflects previous years' awards. During 2008, he received stock with a fair value of $2.4 million, as well as stock options valued at $1.8 million.

Former Peabody lobbyist appointed to key role for Indiana Department of Environmental Management
In April 2009, the Indiana Post-Tribune reported that David Joest was appointed assistant commissioner for the Office of Legal Counsel of the Indiana Department of Environmental Management (IDEM), which puts him in charge of civil enforcement and criminal investigations of the state's largest polluters. For the previous 25 years, Joest had been a registered lobbyist for Peabody. He fought enviromental agencies and prevented tougher environmental rules in both Indiana and Michigan, the paper reported. In Indiana, he represented Peabody against the Indiana Department of Natural Resources in legal challenges over permits and defended the company against enforcement from the Indiana DEM. Environmentalists have expressed concern over a conflict of interest, saying that the appointment coincides with Peabody's efforts to open new mines in Indiana.

Lawsuit filed in Boone County, WV
In February 2009, about 250 people filed suit against coal companies they allege poisoned wells in two communities in southern West Virginia. The lawsuit contends that coal companies pumped waste coal slurry empty mines, and that underground cracks allowed the waste to pollute the aquifer. However, the state Department of Environmental Protection says it has been unable to link the wells to the injection site.

The lawsuit targets eight coal companies, including Massey Energy, Peabody Energy and subsidiary Pine Ridge Coal, and West Virginia's Federal Coal Co.

In April 2009, a settlement agreement was reached and was awaiting judge approval. The settlement calls for the coal companies to contribute $45,000 to a fund to provide drinking water to residents in the Seth-Prenter area. The companies stated as part of the agreement that the payment does not constitute any admission of guilt and is inadmissible in court.

Lawsuit against Peabody Coal operations on tribal lands
On September 30, 2010, a coalition of Native American and conservation groups filed a lawuit against the U.S. Department of the Interior’s Office of Surface Mining (OSM) for withholding records relating to Peabody Energy’s coal-mining operations on tribal lands in northeast Arizona. OSM has so far refused to publicly release pertinent records, including the current operating permit for Peabody's coal mining. According to Nikke Alex, executive director of the Black Mesa Water Coalition, “For decades, OSM has quietly issued permits to Peabody in a way that has thwarted meaningful public involvement and community understanding of Peabody’s mine operations. OSM’s permitting actions have a direct and irreparable impact on our community. These records must be released to the public.”

Plaintiffs in the lawsuit include Black Mesa Water Coalition, Center for Biological Diversity, Dine Citizens Against Ruining Our Environment (Dine CARE), Sierra Club and TO’ Nizhoni Ani. Plaintiffs are being represented by attorneys Brad Bartlett and Travis Stills of the Energy Minerals Law Center in Durango, Colorado.

Global production outlook
Addressing potential investors in Manhattan on June 17, 2010 Gregory Boyce, the chairman and chief executive or Peabody Energy, stated that “a long-term supercycle for coal,” driven by rapidly growing demand in Asia, would be extremely profitable. A company press release explained:


 * Boyce observed that coal has been the world’s fastest-growing fuel this past decade, with demand growing at nearly twice the rate of natural gas and hydro power and more than four times faster than global oil consumption. “It’s stunning that any mature commodity could expand nearly 50 percent in a decade and speaks to the strong appetite for the products we fuel, as well as coal’s abundance and stable cost,” he said. Coal demand is also expected to grow faster than other fuels in coming decades.


 * Asia-Pacific nations are leading a historic global build-out in coal-fueled electricity generation. More than 94 gigawatts of new generation are expected to come on line in 2010, representing 375 million tonnes of coal consumption per year. If growth continues at the current pace, generators would add another 1 billion tonnes of new coal demand every three years.

Richard K. Morse of Stanford responded to Peabody's statement saying, "While Peabody’s PR has taken some creative turns in the past (framing access to coal as a human right), this document reflects a reality that we are watching closely at Stanford: Coal is the world’s fastest growing fossil fuel (for the 8th year now) and likely will be for the next 10-20 at least. According to BP’s 2010 Statistical Review of World Energy released this month, coal now occupies a greater share of the world’s energy mix than at any point since 1970."

Peabody in Australia
In October 2006, Peabody completed an acquisition of Excel Coal Limited, an independent coal company in Australia. Peabody paid $1.52 billion for Excel and also assumed $227 million of Excel's debt. At the time, Excel owned three operating mines and three-development stage mines in Australia. Additionally, Excel had an estimated 500 million tons of proven and probable coal reserves. Peabody owns five other mines in Australia, which are all located in Queensland. Most of the Australian production is low-sulfur, metallurgical coal.

Peabody in China
In October 2008, three years after the opening of its Beijing office, Peabody announced an estimated $2.5 billion project to pursue a large-scale coal mine and coal-to-liquids plant in Inner Mongolia. The plant, which would convert coal into methanol, would be developed by a group that includes Peabody, Inner Mongolia Jitong Railway Group Ltd., and the Chinese government. The mine would produce 10 to 20 million tons of coal per year. The project is a first for an American coal company in China. The company is also considering projects in Mozambique.

In January 2011, Peabody Energy announced two partnerships with Chinese energy companies to build coal mines near newly planned power plants in China. China Huaneng Group, the largest power generator in China, and California-based Calera Corp., agreed to develop a 1,200-megawatt power plant and adjacent coal mine in China's Inner Mongolia. Peabody would operate the surface mine. Huaneng and Calera plans to convert a percentage of the plant's carbon dioxide emissions into cement and other building materials. In the second project, Peabody said it will partner with Yankuang Group Co. to develop a 20-million-ton-per-year surface coal mine to fuel a 2,000-megawatt power plant in the Zhundong region of Xinjiang in northwestern China. The massive project also includes a facility to convert coal to natural gas. Peabody expects the Xinjiang region to nearly triple its coal production by 2015 to increase its output to 1 billion metric tons by 2020.

During January 2011 it was also announced that U.S. based Peabody Coal, China Huaneng Group and Calera Corporation agreed to pursue the development of a clean coal project in the Xilinguole Region of Mongolia. The energy project would include a 1200 MW coal-fired power plant. The proposed plant would seek to capture a portion of carbon dioxide (CO2) and convert it into green building materials, advancing carbon capture technology. The plant would be fueled by a 12 million tonne per year surface mine operated by Peabody Coal.

It was stated that China Huaneng would serve as the power plant operator. Calera would use its technology to convert CO2 into solids that can be used as cement building materials. As of 2011, engineering plans were underway, with more announcements to come later in the year.

It was reported in July 2011 that Peabody would pursue a large coal mine project in China's western Xinjiang region in partnership with the local provincial government. Plans called for a surface mine that would produce 50 million metric tons of coal annually to feed China's energy needs, Peabody wrote in a joint statement with its partner, the government of the Xinjiang Uyghur Autonomous Region.

The mine plan was reported as being very ambitious, with an output forecast at around half the 105.8 million short tons that Peabody last year sold from its flagship North Antelope Rochelle Mine in Wyoming's portion of the Powder River Basin. The deal came as Peabody pursues coal projects in Mongolia and Australia that are likewise designed to serve unbridled demand in China, the world's largest energy user whose top energy source is likely to remain coal, even as the country expands its new energy industries.

Powder River Basin coal and Europe
In 2008, Peabody began sending coal from Wyoming to Europe, first by rail to the Mississippi River, then by vessel through the Gulf of Mexico. It was announced in October 2010 that Peabody Energy was planning to increase the exporting of coal from its Powder River Basin mines to European markets. Peabody exports Powder River Basin coal through existing ports to Europe, Chile and Asia. It is also looking at building a large coal export facility in Oregon. Peabody has contracted 90% of its 2011 production from the Powder River Basin mines, but the company stated that it has coal volumes available for 2012 and 2013.

Exports to Japan
A 2011 Western Organization of Resource Councils Report, "Exporting Powder River Basin Coal: Risks and Costs" noted that Peabody is shipping coal to Japan from the California coast.

Peabody in Indonesia
In December 2010, Peabody Energy signed a deal to receive coal from PT Supra Bara Energi (SBE) in Indonesia. The coal from SBE's mine in East Kalimantan will be exported to customers located in the Asian Pacific Rim through Peabody's COALTRADE international Singapore trading hub. Over the next five years, Peabody plans to supply several million tons of coal from SBE's Indonesian mine.

In February 2011, Peabody Energy said it had reached an agreement to source two million tons of coal for export from Indonesia's PT Cahaya Energi Mandiri. The financial terms of the deal were not disclosed. The coal will be secured over two years from a mine in East Kalimantan. Peabody has done three term deals in recent months that account for 5.5 million tons of Indonesian coal.

Peabody wants Mongolia to be next Powder River Basin
In June 2010, Peabody Energy executives announced that Wyoming's Powder River Basin model for mining coal should be applied to nations around the world in order to "lift growing populations out of poverty." Fred Palmer, senior vice president of government relations for Peabody, spoke at the International Advanced Coal Technologies Conference in Laramie, WY. Palmer called coal "a matter of human rights" in that "cheap coal offers a higher standard of living for all." Peabody Energy - and other companies - are eyeing a coal field in Mongolia to apply the Powder River Basin model of cheap and abundant coal leasing. Peabody, which operates three coal mines in the Powder River Basin, has argued against climate change legislation at the national and international level, pushing instead for coal gasification and carbon sequestration technologies, under the name clean coal. Others believe the scenario of building Powder River Basin-sized coal fields would have a devastating impact in terms of climate change. In July, 2011, Mongolia chose Peabody Energy, along with China's Shenhua Group and a Russian-Mongolian consortium to jointly develop the Tavan Tolgoi coking coal deposit in the Gobi Desert. The development will include a 600 megawatt power station, a coal-to-liquid fuel plant, and coking fuel plants.

Interest in Bangladesh
Petrobangla’s coal mining subsidiary Barapukuria Coal Mining Co. Ltd (BCMCL) operates an underground coal mine at Barapuluria in the Dinajpur District in Bangladesh. The 2,500-acre underground mine includes 650 acres of agricultural land on the surface. Barapukuria's existing mining contract with a Chinese company will expire in 2011, and Peabody has expressed interest in mining the area. In March 2011, Barapukuria had a proven reserve of around 389 million tons of coal, and the company expects to extract 10 to 20 per cent of the total reserves through underground mining within the next 30 years. The government has so far extracted less than four million tons of coal from the mine.

The International Accountability Project reports that mining operations at Barapukuria have destroyed roughly 300 acres of land, impacting about 2,500 people in seven villages, as land subsidence of over one meter in depth has destroyed crops and lands and damaged homes. People in 15 villages have also reportedly lost their access to water, as huge quantities of water pumped out for the Barapukuria mine caused a rapid drop in water levels.

Peabody's production in Wyoming
In January 2009, Peabody announced plans to reduce its yearly production of Powder River Basin coal production by 10 million tons because of the economic downturn and weakening demand worldwide. Peabody's three Wyoming coal mines, which include North Antelope Rochelle Complex, Caballo and Rawhide, produced a total of approximately 143.5 million tons in 2008. together produced about 143.5 million tons in 2008, according a Casper Star-Tribune estimate. North Antelope Rochelle accounted for almost two thirds of that total. The company, which employs over 1,700 miners in the state, does not expect a significant loss of jobs in spite of the production slowdown.

Demand for coal to generate electricity to produce steel in China and India has increased in recent years. Peabody Energy announced on October 20, 2009 that demand for coal in these countries will grow 7 to 8 percent annually over the course of the next five years. The company says that coal from Mongolia will supply China while coal from Australia will handle the increased Asian demand. Peabody president Richard Navarre noted that production at Peabody's mines in the Powder River Basin will also help supply the growing market in China and India.

In November of 2009 the bank HSBC released a report entitled, "The Green Side of Black" that made estimates about coal's involvement in the future of the U.S. energy economy. In it, the bank reported that coal, even under cap-and-trade, will be a lucrative industry in the future. The author of the report also stated that Wyoming's Powder River Basin will be growing faster than other coal regions in the United States. The HSBC report stated that in Arch Coal and Peabody Energy will be especially prosperous because of their extensive involvement in the Powder River Basin.

For more information on the proposed port developments in the western United States please visit the Coal exports from northwest United States ports article.

Proposed Millennium Bulk Logistics Longview Terminal
In September 2010 Peabody Energy announced that "Coal's best days are ahead." Peabody stated that exports of coal from the Powder River Basin in Montana and Wyoming will be central to its expansion goals. The Oregonian in September 2010 reported that Northwest ports, and in particular ports in Portland, Oregon, may be used in the future to export coal to Asia. The Port of Portland said it doesn't have the space for coal exports in the short-term, but its consultants cited coal as a potential long-term market if it adds terminals on West Hayden Island.

In early November 2010 Australia-based Ambre Energy asked Cowlitz County officials in southern Washington State, which borders Oregon, to approve a port redevelopment that would allow for the export of 5 million tons of coal annually. On November 23 Cowlitz County officials approved the permit for the port redevelopment, which is to be located at the private Chinook Ventures port in Longview, Washington. Coal terminals also are proposed at two other sites along the Columbia River.

Environmentalists stated that they would oppose any such actions, arguing that coal contributes to pollution and global warming. Early discussion of how many jobs the port would produce was roughly twenty total.

In November 2010 Powder River Basin coal producer Cloud Peak Energy CEO Colin Marshall stated that a coal port on the West Coast was "absolutely more than a pipedream."

Other Powder River Basin producers, including top US coal miner Peabody Energy, have talked about the potential for a new export facility on the West Coast, with Oregon and Washington being mentioned as the top locations of choice.

Groups including the Sierra Club and Columbia Riverkeeper have vowed to stop the industry's expansion into Asia, a market currently dominated by coal from Australia and Indonesia.

Proposed Terminal: Gateway Pacific Terminal
The Gateway Pacific Terminal is a proposed terminal at Cherry Point near Ferndale, Washington, and would have a maximum capacity of about 54 million tons. On February 28, 2011, SSA Marine applied for state and federal permits for the $500 million terminal, triggering formal environmental review. If approved, the terminal would begin construction in early 2013 and operations in 2015.

On March 1, 2011, Seattle-based SSA Marine announced it had entered into an agreement with St. Louis-based Peabody Energy to export up to 24 million metric tons of coal per year through the Gateway Pacific Terminal. Goldman Sachs owns a portion of SSA Marine's parent company. According to Peabody, the terminal in Whatcom County would serve as the West Coast hub for exporting Peabody's coal from the Powder River Basin of Wyoming and Montana to Asian markets. The project would ramp up potential U.S. coal exports to Asia from Washington state. Another coal export terminal proposed in Longview, the Millennium Bulk Logistics Longview Terminal in southwest Washington, has drawn environmental opposition. That Millennium Bulk Logistics terminal would be a joint venture between Australia-based Ambre Energy and Arch Coal.

Environmental groups have appealed to Washington's Shoreline Hearings Board over a permit awarded for the port by Cowlitz County commissioners.

According to Gateway Pacific Terminal's website the company plans on providing a "highly efficient portal for American producers to export dry bulk commodities such as grain, potash and coal to Asian markets." Additionally, the site contends that the "Gateway project will generate about 4,000 jobs and about $54 million a year in tax revenue for state and local services. Once in full operation, it's estimated that Gateway will provide almost $10 million a year in tax revenue, create about 280 permanent family-wage jobs directly, and nearly 1,400 additional jobs through terminal purchases and employee spending."

Black Cross Movement targets Kayenta Mine
In November 2010 the Black Cross Movement planted symbolic black crosses in front of the Navajo Nation's Kayenta Mine in New Mexcio, which was named in the spring of 2010 as one of the most dangerous mines in the country.

"Puff Puff" inhalers
In May 2011, as part of Asthma Awareness Month, a hoax website allegedly made by Peabody Energy offered free "Puff Puff" inhalers to anybody living within 200 miles of a coal plant.

In addition to the re-branded inhalers, which promised to make asthmatic kids "show others who's cool at school," the website also stated that the company would pledge $10 towards medication as a part of its | Coal Cares campaign. The website contained printable activities for youth. While visiting, one could also read up on why Peabody believed investing in coal was a better bet than alternatives such as solar and wind. The website was a hoax and was denounced by Peabody officials.

A group called Coal Is Killing Kids worked with the Yes Lab, an extension of the Yes Men activist team, for a month and a half to develop the fake site.

After the prank, Peabody sent a letter to the groups, accusing them of misleadingly infringing upon Peabody's trademark and trade name.

In response, Coal is Killing Kids and the Yes Men said they would "cease falsely suggesting that Peabody cares about kids made sick by coal."

Leaked memo on coal marketing strategies
In January 2009, a 2004 leaked memo to then Peabody CEO Irl F. Engelhardt from Steve Miller, who was President of the Center for Energy and Economic Development (now called American Coalition for Clean Coal Electricity), detailed the public relations and lobbying strategies being used to counteract issues including climate change, mercury, plant development, and EPA rulings. Miller details methods used to "sow discord" among regions seeking to limit greenhouse gas emissions.

Other strategies revealed in the memo include:
 * On climate change: "In the climate change arena, CEED focuses on three areas: opposing government-mandated controls of greenhouse gases (GHG), opposing 'regulation by litigation', and supporting sequestration and technology as the proper vehicles for addressing any reasonable concerns about greenhouse gas concentrations in the atmosphere."
 * More on climate change: "Our belief is that, on climate change like other issues, you must be for something rather than against everything. The combination of carbon sequestration and technology is what we preach and we are looking for more members in the choir."
 * On regional cap and trade programs: "More than a year ago, New York Governor Pataki proposed an eleven-state regional CO2 cap and trade program. CEED has been engaged in this effort from its beginning. Persuading Pennsylvania and Maryland (as major coal-consuming states) to stay on the sidelines, rather than signing onto this initiative, has been one element of our strategy. The other element is to pose voluntary sequestration and technology as the correct policy, rather than mandatory controls."
 * On mercury: "Our strategy in dealing with mercury has been two-fold: prevent states from taking precipitous or unwarranted action to regulate mercury and engage in the federal rulemaking to protect the interests of coal-based electricity."
 * More on mercury: "In 2003, the Quicksilver Caucus with Environmental Council of States (ECOS) tried to pass a resolution calling for the "virtual elimination" of mercury. CEED worked in a coalition with other organizations and companies to convince many states that the Quicksilver strategy was not the right approach and the "virtual elimination" verbiage failed."
 * On proposed CO2 regulation by the EPA: "About a dozen states sued the EPA last year alleging that the agency must regulate CO2 under the Clean Air Act. CEED was the lead organization for outreach to the vast majority of state attorneys general who intervened on the Bush Administration's side in new litigation designed to force CO2 regulation under the Clean Air Act."

Coal gasification
On August 30, 2007, Ernie Fletcher, the governor of the U.S. state of Kentucky, signed into state law a bill that will provide approximately $300 million in incentives to Peabody to build a coal gasification plant in that state. The incentives comes in the form of breaks on sales taxes, incentive taxes and coal severance taxes.

On January 25, 2008, Peabody and GreatPoint Energy of Cambridge, MA announced an agreement between the companies where Peabody Energy became a minority investor in GreatPoint Energy, and that Peabody would be the coal supplier for GreatPoint's coal gasification process. The two companies will collaborate on building coal gasification plants near Peabody's mines in the Powder River Basin. Peabody's investment will be used to bring GreatPoint Energy's technology to a commercial scale. The agreement also included creating an observer role for Peabody Energy on GreatPoint Energy's Board of Directors.

On February 18, 2010, GreatPoint and Peabody announced that the companies would work together to develop coal-to-gas and coal-to-hydrogen plants in and beyond the U.S. The hydrogen could be both used for electricity and sold to industries. Synthesized natural gas could be transported through existing pipelines. The companies plan to use carbon capture and storage in the process. Peabody plans to use captured carbon "to extract even more oil out of once-depleted oil reserves". The companies have not announced any details such as locations, costs, or timeline for the prospective plants.

In March 2010 Peabody invested $15 million into Calera. The company says it has developed technology to capture carbon dioxide emissions from power plants and other industrial facilities. With the addition of waste water or brine, the company used carbon dioxide to produce cement and other building materials. Critics do not believe Calera's technology will actually decrease carbon dioxide. Ken Caldiera PhD, a professor at the Carnegie Institution Department of Global Ecology, studies carbon sequestration and stated that from the publicly available info about Calera’s technology, it seems to go "in the wrong direction and will tend to increase and not decrease atmospheric CO2 content."

'Clean Coal' Booster
In December 2008, Peabody Energy announced that it would contribute $2 million in funding for the Clean Coal Technology Center in the University of Wyoming's School of Energy Resources. In a media release Peabody stated that the grant "will focus on economic and energy analysis and will support the Technology Center's work in advanced coal utilization research and interdisciplinary undergraduate and graduate programs for energy-related careers. It will also serve as a catalyst for technology transfer to key stakeholders. A multidisciplinary economic and energy analysis of the Powder River Basin's contribution to America's economy will be part of the initial and ongoing research."

At the same time, Peabody also announced that it would contribut $5 million over five years to the Consortium for Clean Coal Utilization at Washington University. This was described in a media release as a project designed to "bring university researchers, industries, foundations and government organizations together to research clean coal technology, making St. Louis the nation's center for clean coal research." The project will be run by the university's International Center for Advanced Renewable Energy and Sustainability(I-CARES).

Campaign contributions by Peabody Energy
Open Secrets reports that in 2010, Peabody's PAC spent $211,534 on lobbying and political contributions. A full list of federal candidates they contributed to in 2009-2010 can be seen HERE.

Peabody is a major contributor to both Republican and Democratic candidates for Congress, having contributed $272,300 to members of the 110th Congress (2007-2008). Contributions like this from from fossil fuel companies to members of Congress are often seen as a political barrier to pursuing clean energy.

FollowTheCoalMoney lists $138,200 in contributions from Peabody Energy to members of the House of Representatives in the 110th Congress (2007-2008) as being
 * $14,200 to Roy Blunt;
 * $10,000 to Jerry F. Costello;
 * $9,500 to Frederick C. Boucher;
 * $6,000 to John M. Shimkus;
 * $4,000 to Ed Whitfield;
 * $3,500 to Joe Linus Barton;
 * $3,000 to Michael Avery Ross;
 * $3,000 to Bart Gordon;
 * $2,800 to Shelley Moore Capito;
 * $2,750 to Frederick Stephen Upton;
 * $2,500 to David D. Boren;
 * $2,500 to Charles W. Dent;
 * $2,300 to Steny Hamilton Hoyer;
 * $2,000 to Eric Cantor;
 * $2,000 to John J. Barrow;
 * $2,000 to Geoffrey C. Davis; and
 * $2,000 to Charlie Melancon Jr.

FollowTheCoalMoney lists $134,100 in contributions from Peabody Energy to members of the House of Representatives in the 110th Congress (2007-2008) as


 * $31,900 to Mitch McConnell (R-KY)
 * $30,200 to John D. Rockefeller (D-West Virginia); and
 * $7,000 to John A. Barrasso (West Virgina)

More information on specific coal companies and representatives can be found at FollowtheCoalMoney.org, a project sponsored by the nonpartisan, nonprofit Oil Change International and Appalachian Voices.

Lobbying
Peabody spent $$1,360,000 on lobbying in the first 5 months of 2011 and $4,680,000 in 2010.

Lobbying firms include: Bryan Cave LLP; Dickstein Shapiro LLP; Gephardt Group; Holland & Hart; International Government Relations Group; John Hancock & Assoc; K&L Gates; Mercury; MML&K Government Solutions; Peabody Investments; Richard F Hohlt; Shook, Hardy & Bacon; Spectrum Consulting Group; and Stinson, Morrison & Hecker.

A full list of bills lobbied for in 2011 can be seen HERE. A list for 2010 can be seen HERE.

Peabody Energy and Climategate
Among the submissions to the UK Parliamentary Science and Technology Committee's enquiry into the "Climategate" hacked emails saga, is a submission from Peabody Energy Company. The submission contains a number of straight errors including the made up quote "Hide the Warming" which does not appear in any of the 1073 hacked emails. Apart from the obvious connection that Peabody is a company which stands to lose if climate science influences public policy it is not quite clear why Peabody Energy Company, an American company, chose to influence the British Government in this way.

Peabody Energy Lobbying in 2009
According to an official disclosure report filed with the House clerk's office, Peabody Energy spent $820,000 on lobbying expenses in the first quarter of 2009. During the period from January to March, the company lobbied on coal, mine safety, energy tax credits, and global warming issues. Christopher Leahy, a former policy coordinator for the House Energy and Commerce Committee, and Ursula Wojciechowski, a former staff member of several House subcomittees, were among those registered as Peabody lobbyists.

Peabody Energy Lobbyists in 2008
In May 2008, Peabody disclosed that it had spent almost $1.3 million in the first quarter of the year to lobby Congress on coal-related legislation, including coal-to-liquid fuels, global warming, tax credits, and other issues.

The Center for Public Integrity lists Peabody Energy's 2008 lobbyists, based on public disclosure documents, as being


 * Holland & Hart LLP which was paid $120,000 in 2008;
 * Kirkpatrick & Lockhart Preston which was paid $80,000 in 2008;
 * Richard F. Hohlt who was paid $16,000 in 2008;
 * Stinson Morrison Hecker which was paid $360,000 in 2008;
 * Gephardt Group, LLC which was paid $480,000 in 2008;
 * Dickstein Shapiro LLP which was paid $770,000 in 2008;
 * Crowell & Moring LLP which was paid $50,000 in 2008.

Coal projects sponsored by Peabody Energy

 * GreenGen (China) - equity partner
 * Prairie State Energy Campus (Illinois)
 * Thoroughbred Generating Station (Kentucky)
 * FutureGen (Illinois) - participant - cancelled
 * Mustang Energy Project (New Mexico) - cancelled

Mines owned by Peabody
Arizona:
 * Kayenta Mine

Colorado:
 * Twentymile Mine
 * Foidel Creek Mine

Illinois:
 * Gateway Mine
 * Riola Mine Complex
 * Wildcat Hills Complex
 * Wildcat Hills Underground Mine
 * Willow Lake Mine

Indiana:
 * Air Quality Mine
 * Farmersburg Mine
 * Francisco Complex
 * Miller Creek Mine
 * Somerville Central Mine
 * Somerville Mining Complex
 * Viking Mine

Kentucky:
 * Highland 9 Mine

New Mexico:
 * El Segundo mine
 * Lee Ranch mine

Wyoming:
 * Caballo Mine
 * North Antelope Rochelle Mine
 * Rawhide Mine

Australia, via its wholly owned subsidiary Peabody Energy Australia:
 * Burton Mine
 * Chain Valley Mine
 * Metropolitan Mine
 * Millennium Mine
 * North Goonyella/Eaglefield Complex
 * Wambo Mine
 * Wilkie Creek Mine
 * Wilpinjong Mine

Peabody announces development of new mine in Indiana
On March 17, 2009, Peabody Energy announced it had entered into long-term coal supply agreements totaling over 90 million tons of coal, allowing the company to develop the Bear Run Mine in Sullivan County, Indiana. Bear Run will be the largest surface coal mine in the eastern United States, with an expected output of about 8 million tons of coal each year. Initially the mine will supply coal to two major Midwestern electricity generators under contracts with terms of up to 17 years. Together these contracts are expected to generate nearly $6 billion in revenues. Peabody will invest an estimated $350 to $400 million over several years to bring the mine to its fullest capacity.

Peabody closes last mine in Vermilion County, Illinois
In March 2009, Peabody Energy told 160 miners that the Vermilion Grove Coal Mine, which was the last mine active in Vermilion County, IL, was slated to close. The mine was shut down because it had exhausted its coal reserves. Peabody said it would offer the miners work at other company mines in the Midwest.

Mining Expansion
In late November 2009, Peabody Energy's Arclar Coal Company received two permits, one for water quality certification and one for discharge, allowing mining to expand on 668 acres at the Wildcat Hills Complex in southern Illinois. Two hearings - one for each permit - were held on Sept. 29 and Oct. 14, 2009, and environmental groups such as the Sierra Club, Prairie Rivers Network, and the Environmental Law and Policy Center raised objections to the expansion. However, the Illinois Environmental Protection agency approved the permits.

Head of Peabody Mines, Greg Boyce on March 31 announced that the company is expecting to increase exports from its Australian mines by 20 to 30 percent in 2010.

Coal India in Discussions with Peabody
It was announced in November 2011 that Coal India was in talks with Peabody Energy and Massey Energy about acquiring two of the companies' mines. Coal India has budgeted $1.2 billion to buy assets in the U.S., Indonesia and Australia during the year ending March 2011 as it battles a widening gap between domestic coal supply and demand.

History
Peabody Energy originated with the founding of Peabody, Daniels & Company by Francis Peabody and a partner. The company bought coal from established mines and sold it to homes and businesses in the Chicago area. Francis soon bought out his partner, and, in 1890, he incorporated the company as Peabody Coal Company. In 1895, the company began operating its first mine, in Williamson County, Illinois. In 1913, the company won its first long-term contract to supply a large electric utility. Such contracts to electric utilities is how Peabody makes most of its money today. The corporation went public in 1929 with a listing on the Midwest Stock Exchange, and, in 1949, was listed on the New York Stock Exchange.

While Peabody was profitable during its early years, it hit hard times in the early 1950s. To address the situation, it entered into merger talks with Sinclair Coal company. The merger occurred in 1955, resulting in the move of Peabody's headquarters to St. Louis. The merged company, however, retained the Peabody name. Under the leadership of coal-veteran Russell Kelce, the company expanded production and sales, and purchased a mine in Queensland, Australia, its first outside of North America.

In 1968, the company was purchased by the Kennecott Copper Corporation. The U.S. Federal Trade Commission, however, challenged the purchase as an antitrust violation. In 1976, the FTC ordered Kennecott to divest itself of Peabody. The newly-created Peabody Holding Company purchased the Peabody Coal business of Kennecott for $1.1 billion. A consortium of companies controlled Peabody-Holding. In 1990, Hanson PLC, one of the owners of Peabody Holding, bought out the rest of the owners. Peabody was eventually bought by a unit of Lehman Brothers, which brought the company public as Peabody Energy Corporation in 2001. The IPO for Peabody Energy raised proceeds of $456 million.

Reference in song
The environmental impact of Peabody Energy's strip mining operations in Muhlenberg County, Kentucky is the subject of John Prine's 1971 song "Paradise." The company was forever immortalized in the song, popular on the bluegrass circuit, whose refrain goes thusly:
 * ''And daddy won't you take me back to Muhlenberg County
 * ''Down by the Green River where paradise lay?
 * ''Well, I'm sorry my son, but you're too late in asking...
 * Mister Peabody's coal train has hauled it away.

Contact information
Website: www.peabodyenergy.com

Related SourceWatch articles

 * Alliance for Energy and Economic Growth
 * Mining industry
 * National Mining Association
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 * China and coal
 * Wyoming and coal
 * Montana and coal
 * Coal exports from northwest United States ports

External resources

 * Black Mesa Peabody Coal debate on Wikipedia
 * FollowtheCoalMoney.org
 * Oil Change USA
 * Appalachian Voices
 * "Peabody Energy," profile on the LittleSis "Profiling the Powers that Be" database showing corporate relationships, contributions, and interlocks with other companies
 * Memorandum to UK Parliamentary Enquiry on Climategate by Peabody Energy Company http://www.publications.parliament.uk/pa/cm200910/cmselect/cmsctech/387b/387we53.htm